BRRRR Calculator (Buy-Rehab-Rent-Refinance-Repeat)
BRRRR strategy calculator. Buy-Rehab-Rent-Refinance-Repeat. Total investment, ARV-based refi cash-out, cash recovered, ongoing cash flow, infinite-ROI verdict.
BRRRR Calculator
How BRRRR works — 5 steps
Buy — find a distressed property below ARV
Target: distressed (deferred maintenance, cosmetic issues, motivated seller) properties 60-70% of After-Repair Value (ARV). Acquisition typically all-cash, hard money loan, or HELOC since traditional mortgages don't cover heavily rehab-needed properties. Purchase price + closing + rehab should fit "70% rule": cost basis ≤ 70-75% of ARV.
Rehab — make rentable
Renovate to rentable condition (not Pinterest-worthy). Focus on: roof, HVAC, electrical, plumbing safety. Kitchens + bathrooms add the most value. Track every receipt for refi underwriting. Holding costs (utilities, tax, insurance, interest on hard money) eat the timeline — target 60-90 days max for rehab.
Rent — find a tenant
Rent at market rate after rehab completion. Tenant placement before refi is REQUIRED — many lenders won't do cash-out refi on vacant properties. Use property management or self-manage. Screen carefully — the wrong tenant ruins the whole BRRRR cycle.
Refinance — pull cash out at 75% of ARV
After ~6-12 months (lender seasoning requirement), refinance with a conventional 30-year rental loan at 75% LTV of new ARV. Cash-out at refi: refi loan − refi closing costs = cash you recover. Target: cash recovered ≥ original investment ("infinite ROI" because remaining capital in deal is zero or negative).
Repeat — buy the next
Use the cash recovered as the down payment / acquisition fund for the next BRRRR property. Strong BRRRR investors compound 2-4 properties per year using the same starting capital. Cash flow on existing properties grows portfolio income while you redeploy capital. The strategy fails if any single BRRRR doesn't cash-out enough — be conservative on ARV estimates.
BRRRR — recycle one pool of capital across multiple properties
BRRRR (Buy-Rehab-Rent-Refinance-Repeat) is a real estate investment strategy popularised by David Greene in his 2019 book Buy, Rehab, Rent, Refinance, Repeat via the BiggerPockets community. The fundamental insight: traditional rental investing ties up your capital indefinitely (you put 25% down, you have 25% locked up). BRRRR forces equity creation through rehab + appreciation, then refinances at 75% LTV of the new (higher) value. If the cash pulled at refi equals or exceeds your original investment, you\'ve effectively transformed your capital into ownership of an asset that throws off cash flow forever — without spending the capital. This is why BRRRR practitioners call it "infinite ROI" investing.
The math that has to work
For a true "infinite ROI" BRRRR: cash recovered at refi ≥ total investment. The recipe: (1) acquisition cost + closing + rehab + holding must be ≤ 75% × ARV minus refi closing costs. Example: ARV $280K, refi LTV 75% = $210K refi loan. If total investment was $200K, refi cash-out covers it. If total investment was $250K, you leave $40K in the deal. The "70% rule" used by flippers is a similar threshold: All-in cost basis ≤ 70% of ARV. BRRRR\'s 75% threshold is slightly more lenient because you\'re keeping the property as a rental, not selling.
BRRRR isn\'t magic. It only works when the rehab genuinely adds value — buying a $150K property + $50K rehab and getting a $280K ARV requires the rehab to add real, appraisable value. Skip this step or pick the wrong market, and BRRRR becomes "Buy, Rehab, Rent, Get Stuck With Capital Trapped, Stop."
Where BRRRR fails
Common failure modes: (1) Overpaid acquisition — paid too close to ARV, no room for rehab value-add. (2) Rehab overrun — actual rehab 30-50% over budget, common for first-time rehabbers. (3) Appraisal disappoints — refi appraisal comes in lower than your ARV estimate, reducing refi loan amount. (4) Holding-cost creep — rehab takes 6 months instead of 3, doubling carrying costs. (5) Tenant issues — bad tenant ruins early cash flow, sometimes derailing refi qualification. (6) Wrong market — declining/stagnant areas don\'t reward the rehab investment. Mitigations: conservative ARV estimates, 20-30% rehab contingency, multiple contractor quotes, exit via flip if BRRRR breaks down.
ASEAN context
BRRRR is predominantly a US strategy. ASEAN markets generally lack: (a) hard-money lenders willing to fund 80%+ of acquisition + rehab, (b) seasoned cash-out refi at 75% LTV (most Asian banks limit cash-out to 70-80% original purchase, not ARV), (c) liquid market for distressed properties at deep discounts. Closest Asian analog: Australia\'s "subdivision" / "knockdown-rebuild" investor strategies. Hong Kong: small-shop conversion projects similar in concept. For most ASEAN investors, traditional buy-and-hold rental investing makes more sense than BRRRR.
10 Things to Know About BRRRR
BRRRR = Buy, Rehab, Rent, Refinance, Repeat. Popularised by David Greene + BiggerPockets community.
Goal: cash-out refi ≥ total investment, leaving zero capital in the deal ("infinite ROI").
70% rule: total cost basis ≤ 70-75% of ARV. The maximum-deal-cost discipline.
Acquisition typically via hard money / cash / HELOC — traditional mortgages don\'t cover heavy rehabs.
Lender seasoning typically 6-12 months before cash-out refi allowed. Plan timeline accordingly.
Refi LTV: typically 75% for rentals (vs 80% for owner-occupied). Some lenders go to 80% on strong deals.
Holding costs kill timelines: utilities + tax + insurance + interest = $1-2K/month during rehab.
BRRRR works best in steady-appreciation markets with reliable rental demand (Midwest, Sun Belt secondary).
Most-overlooked risk: ARV appraisal disappoints. Build 10-15% margin into ARV estimates.
Successful BRRRR investors compound 2-4 deals per year using the same starting capital pool.
Frequently asked questions
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Short-term loan from a private lender, secured by the property, used for distressed acquisitions + rehab. Terms: 6-12 month duration, 8-12% interest rates, 2-4 points upfront, typically 70-90% of purchase price + rehab. Hard money is expensive ($1-2K/month carrying cost on $200K loan) but lets you close fast (7-14 days) on cash-deals without bank scrutiny. The BRRRR plan: hard money for acquisition + rehab, refi to conventional 30-yr at 75% LTV of ARV to pay off hard money + recover cash.
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The minimum waiting period before a lender will refinance a property at its higher post-rehab value. Conventional lenders: typically 6-12 months seasoning required. The reason: lenders want to confirm the rehab is real, the rental is stable, and the borrower hasn\'t artificially inflated value. Some non-conforming lenders (DSCR loans, portfolio lenders) have shorter seasoning (3-6 months) or no seasoning, in exchange for higher rates.
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Three approaches. (1) Comparable sales (comps): pull recent sold prices for similar-quality properties in the same neighborhood, post-rehab condition. Use 6 months max, adjust for square footage + condition. Most reliable. (2) Real estate agent BPO: ~$50-100 for a Broker Price Opinion. Quick, less accurate. (3) Pre-purchase appraisal: $400-700 from a licensed appraiser. Most accurate but slow. Pad your ARV estimate by 10-15% for safety — if your $280K estimate is right but appraiser comes in at $260K, the deal might still work; if you padded too aggressively, deal could fall apart.
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Almost universal — budget 20-30% contingency above contractor quotes. Real overruns come from: hidden water damage, mid-job code upgrades, contractor disputes, supply chain delays. Mitigations: detailed scope of work + bid, milestone-based payments (not upfront), backup contractor list, holding-cost cushion in your reserves. If overruns push total investment too high: alternatives are (a) reduce rehab scope (cosmetic only), (b) accept reduced cash recovery at refi, (c) sell the property as-is via wholesale to recoup.
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Harder than 2010-2018. Three headwinds: (a) Higher interest rates raise mortgage costs + lower refi loan amounts, (b) Compressed cap rates means less rental income relative to price, (c) Heavily competitive distressed-acquisition market. Still viable but margins are tighter. Best modern BRRRR markets: Midwest secondary cities (Cleveland, Indianapolis, Kansas City), Sun Belt outskirts, aging-housing-stock areas. Avoid hot coastal markets where competition has eliminated easy deals.
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Debt-Service Coverage Ratio loans qualify the BORROWER based on the PROPERTY\'S cash flow, not personal income. Required DSCR: typically 1.0-1.25× (rent ≥ 100-125% of mortgage payment). Useful for BRRRR investors who: (a) have many properties and personal DTI is "maxed", (b) self-employed with unconventional income, (c) want minimal docs. Rates ~0.5-1% higher than conventional rental mortgages. Most rental BRRRR refis use DSCR loans because of the income-flexibility.
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Yes — duplex, triplex, quadplex (2-4 units) qualifies for residential financing terms. 5+ units is commercial financing with different rules. BRRRR on multi-family is often easier than single-family because: (a) multiple rent streams reduce vacancy risk, (b) better cash flow at refi qualification, (c) appraisals use income-approach which rewards higher rents. Drawbacks: higher acquisition + rehab costs, more complex tenant management, financing terms differ slightly.
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Most BRRRRs leave SOME cash in the deal — only the best deals achieve true infinite ROI. If you recover 80% of investment, you\'ve still freed up 80% for the next deal AND own a cash-flowing property. The deal still works as long as: (a) cash-on-cash on the remaining capital is reasonable (8-12%+), (b) property has positive cash flow, (c) you have access to other capital for the next deal. The "infinite ROI" outcome is the ideal; "partial BRRRR" is the realistic outcome for most deals.
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No. All inputs stay in your browser. BRRRR computation runs entirely client-side. Open DevTools → Network when you click Analyse and you\'ll see zero outbound requests.
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David Greene, Buy, Rehab, Rent, Refinance, Repeat (2019). The canonical BRRRR book. BiggerPockets (biggerpockets.com) — the BRRRR community. Free podcast + forums + paid courses. Brandon Turner + Joshua Dorkin co-founded BiggerPockets and have multiple complementary real estate books. Real Estate Investing for Dummies for absolute beginners. The Stessa app for tracking real-time rental P&L.
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